Ahmanson announces new stock repurchase program; additional $150 million authorized; Preferred Stock Series B to be redeemed.IRWINDALE, Calif.--(BUSINESS WIRE)--May 14, 1996-- H.F. Ahmanson & Co. (NYSE NYSE See: New York Stock Exchange :AHM AHM Automated Hacking Machines AHM All Hands Meeting AHM Academy for Healthcare Management AHM Atom Heart Mother (Pink Floyd album) AHM Airport Handling Manual AHM Acutely Hazardous Material AHM Anti-Helicopter Mine ), parent company of Home Savings of America, Tuesday announced that it has completed its initial $250 million stock repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. program and will begin a new program to purchase an additional $150 million of its common stock. During the initial program, which was announced on Oct. 3, 1995, the company purchased 10.4 million shares, or 9% of the outstanding common shares, at an average price per share of $23.98. In addition to its new program to repurchase common stock, the company announced that on Sept. 3, 1996, it will redeem its 9.60% Preferred Stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. , Series B, at $25 per Depositary Share, plus accrued and unpaid dividends to and including the redemption date Redemption date The date on which a bond matures or is redeemed. redemption date The date on which a debt security is scheduled to be redeemed by the issuer. The redemption date is the scheduled maturity date or, if applicable, a call date. . First Chicago Trust Co. of New York will serve as the redemption agent for this issue. Charles R. Rinehart, chairman and chief executive officer of Ahmanson and Home Savings, said: ``In keeping with the company's commitment to shareholder value, the board of directors authorized a new $150 million stock repurchase plan stock repurchase plan 1. See buyback. 2. See self-tender. . ``Our cash flow projections for the remainder of the year anticipate sufficient cash to accomplish the redemption and additional common stock repurchase. We believe this program is an excellent way to deploy our excess capital.'' ``The redemption of the Series B Preferred Stock will contribute approximately $0.09 to annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. earnings per share,'' Kevin M. Twomey, chief financial officer, added. ``Although we do not plan to replace the preferred issue at this time, we may decide to add to our outstanding preferred stock in the future.'' On completion of the initial common stock repurchase program, the company had 107.8 million common shares outstanding. H.F. Ahmanson, with $49.8 billion in assets, is the parent company of Home Savings of America. Home Savings' deposit base is $34.2 billion. It operates 347 financial service centers in four states and 115 mortgage lending offices in nine states. -0- NOTE: Additional information, including monthly financial data, about H.F. Ahmanson and Home Savings of America can be retrieved free of charge using the following services: -- Internet: http://www.investquest.com -- Fax-on-Demand: 614/844-3860 -- On-line BBS (1) (Bulletin Board System) A computer system used as an information source and forum for a particular interest group. They were widely used in the U.S. : 614/844-3868 CONTACT: H.F. Ahmanson & Co., Irwindale Media: Mary Trigg, 818/814-7922 Investor: Steve Swartz, 818/814-7986 |
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